A federal judge in California has issued a preliminary injunction blocking the merger of local television giants Nexstar Media Group and Tegna Inc. The order, granted by US District Court Chief Judge Troy L. Nunley on Friday, forbids the companies from combining operations while an antitrust lawsuit brought by eight state attorneys general is settled.
The $6.2 billion deal had already received approval from the Federal Communications Commission (FCC) and the US Department of Justice (DOJ) last month. Nexstar and Tegna formally closed the transaction on March 19, immediately after the DOJ announced the early termination of its antitrust review.
States Challenge Federal Approval
California Attorney General Rob Bonta, leading the coalition of eight states, hailed the injunction as "a critical win in our case." In a statement, Bonta argued, "This merger is illegal, plain and simple. The federal government may have thrown in the towel, but we'll keep fighting for consumers, for workers, for affordability, and for our local news."
The legal challenge contends that the merger would reduce competition in local broadcast markets and advertising, potentially leading to higher prices for consumers and diminished local news coverage. This state-led action follows a separate temporary restraining order granted last month in a challenge brought by satellite TV provider DirecTV.
Nexstar Vows to Appeal
Nexstar, the largest owner of local broadcast television stations in the United States, announced it would appeal the decision to the Ninth Circuit Court of Appeals. The company defended the merger in a statement, saying, "This pro-competitive transaction will make local stations stronger and support continued investment in local journalism and fact-based news. We will appeal today's decision and look forward to presenting our case on its merits."
The injunction represents a significant hurdle for a deal that had already cleared major federal regulatory barriers. It underscores ongoing tensions between state and federal authorities over antitrust enforcement in the media sector, particularly concerning consolidation among local news providers.
The case will now proceed through the courts, with the preliminary injunction remaining in place until the antitrust lawsuit is resolved. The outcome could set a precedent for how future media mergers are challenged at the state level, even after receiving federal approval.